Cardinal Logistics Management Corporation. Frequently Asked Questions

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1 Cardinal Logistics Management Corporation Frequently Asked Questions Who is Cardinal Logistics Management Corporation? Cardinal Logistics Management Corporation (Cardinal) is an integrated third-party logistics and transportation solutions provider that uses its own trucking and related equipment, extensive industry expertise and advanced technology to help customers manage their transportation requirements and optimize their supply and demand chains. Cardinal provides consulting services, including transportation system design and engineering, third-party logistics management, dedicated contract carriage, dedicated delivery and warehouse management services. Cardinal works with more than 100 distinct transportation projects under long-term contracts for its customers. When was Cardinal founded? Cardinal started in 1981 with 14 tractors as a common carrier. In July 1997, Cardinal Freight was purchased from its former parent company, ABF, by the Chicago-based private equity firm GTCR Golder, Rauner. At the same time, a new executive management team was recruited and led by industry veterans, Vin McLoughlin and Tom Hostetler. Cardinal has grown substantially since that time broadening its scope of services and transforming from an irregular route truckload carrier into a world class industry leader providing superior third-party logistics with a heavy emphasis on dedicated delivery and transportation technology solutions. Where Cardinal is headquartered and how extensive are its operations? Cardinal is privately-held and headquartered in Concord, N.C. The company has a national presence with operations throughout the United States and Puerto Rico. What is dedicated transportation? Dedicated transportation is one of the fastest growing segments of the transportation industry. Cardinal s dedicated transportation team provides turn-key solutions for companies that desire to replace a private fleet, create a private fleet or supplement an existing fleet. Cardinal offers a team of seasoned design engineers and operation managers who carefully assess the operational needs of each customer individually. Once analyzed, Cardinal relies on advanced systems technology to optimize the customer s transportation system. What is Cardinal s mission? Cardinal s mission is to be the most trusted integrated transportation solutions provider in the business. Cardinal fulfills its mission by delivering value to its customers by providing knowledge-based, integrated transportation logistics solutions using advanced systems technology, efficient equipment and the industry s most experienced professionals. What are Cardinal s core services? Cardinal offers both asset and non-asset based dedicated contract carriage services, dedicated home/jobsite delivery services, logistics management, technology and consulting services and warehouse and inventory management. Who are Cardinal s core clients? Cardinal provides third-party logistics, advanced technology and dedicated transportation solutions to a variety of customers in the retail, manufacturing and automotive industries. Key customers include: AutoZone, Eastman Kodak Company, Kraftmaid Cabinetry, Land O Lakes, Office Depot, Papa John s International, PetSmart, The Home Depot and many others.

2 What sets Cardinal apart from others in the industry? Cardinal has created a unique market niche in the retail industry sector specifically through dedicated home/jobsite delivery transportation services. Our relationships with some of North America s top retailers are a testament to our ability to understand, develop and implement custom transportation and logistics solutions. These customized transportation and logistics solutions allow our retail customers to deliver their products from store shelves along the final mile of the supply chain to consumers front doors. What value-added services can Cardinal offer customers? Information technology is a fundamental value-added service that sets Cardinal apart from other 3PLs in the marketplace. Cardinal s advanced technology applications and customizable logistics and transportation solutions have proven to be a tremendous benefit to our diverse array of Fortune 500 customers. Cardinal offers customers an array of web-enabled technology modules from which to choose that integrate seamlessly with their operating systems. These robust information management modules integrate the transfer of information from systems, through the delivery and acknowledgement functions that allow our customers to produce meaningful service reports used to streamline their supply chain operations. What makes Cardinal unique? The delivery of dedicated transportation systems and services is our business, not a sideline. Cardinal has built a strong reputation as a trusted partner that employs the right people to get the job done, including engineers, operating managers and the most professional drivers in the business. Our focus is delivering high value-added solutions and, in particular, dedicated transportation services for customers with complex requirements. Cardinal s logistics experts work directly with clients to develop and run innovative solutions that turn their logistics operations from liabilities into strategic advantages. Cardinal people understand that we re successful when our customers are able to streamline their logistics operations and improve their bottom line. Cardinal has completed a number of corporate acquisitions over the past several years. What is the background on those transactions? Cardinal itself began with an acquisition of Cardinal Freight from ABF to form a specialized dedicated transportation company in This acquisition of Cardinal Freight allowed the management team to immediately establish a core base of operations. Subsequently, in 1998, Cardinal acquired a small company based in the Northeast that had several dedicated operations in place and needed help to grow and fully address its customers requirements. The following year, Cardinal extended its service capabilities to encompass local dedicated delivery activity when it acquired an Atlanta-based company, which was renamed Cardinal Delivery. During the acquisitions, Cardinal maintained solid internal growth and offered additional resources to address customer needs. In January 2001, Cardinal recognized the success it was achieving in the dedicated and logistics services and chose to focus on those while eliminating its truckload line. Since that time, Cardinal has experienced explosive demand for its dedicated and delivery product lines. Who are Cardinal s investment partners? Founded in 1980, GTCR Golder, Rauner is one of the nation s leading private equity investment firms and a long-term strategic partner for management teams. It pioneered the investment strategy of identifying and partnering with exceptional executives to build companies in fragmented and rapidly growing industries. GTCR currently manages more than $6 billion in equity and mezzanine capital invested in a wide range of industries. The company s primary industry focus includes healthcare, business services/outsourcing, transaction processing, technology, distribution and logistics, branded consumer products and niche opportunities. The firm s principals have invested in more than 100 companies and are recognized for their ability to create value consistently through the development of successful businesses.

3 Corporate Fact Sheet Founded July 1997, following acquisition of Cardinal Freight and its former parent company ABF, by Chicago-based equity firm GTCR Golder, Rauner Headquarters Concord, NC (USA) Ownership Privately-held, asset-based Company URL Executive Management Chairman of Board CEO President and COO CFO Vin McLoughlin Tom Hostetler Jerry Bowman Carl Texter Employees 2,000 (including drivers) Managed locations 139 Assets: Total Tractors Total Trucks Total Trailers Corporate Address Key Services Specialty Services Key Industries Key Clients Investment Partners 1, , Davidson Highway Concord, NC (USA) (toll-free) (local) (fax) Third-party logistics, Transportation Management, Dedicated Contract Carriage, Dedicated Home/Jobsite Delivery, Technology, Consulting, Warehousing and Inventory Management. Dedicated Home/Jobsite Delivery, JIT Inbound Services, Bulk Carriage, Refrigerated Transportation Solutions, Advanced Technology Solutions Retail, Manufacturing, Automotive Andersen Windows, AutoZone, CHEP, Coca-Cola, Eastman Kodak Company, Kraftmaid Cabinetry, Land O Lakes, Office Depot, Papa John s International, PetSmart, The Home Depot Chicago-based private equity firm GTCR Golder, Rauner. Founded in 1980, GTCR is one of the nation s leading private equity investment firms and a long-term strategic partner for management teams

4 Management Team Executive Bios Cardinal Logistics Management Corporation is led by a management team comprised of the industry s most trusted and respected transportation and supply chain industry veterans. Hailing from some of the country s most successful organizations, Cardinal s staff has managed top logistics functions for some of the most challenging vertical industries including: just-in-time automotive, retail, high-tech and electronics, food and frozen grocery, and many others. With extensive expertise in logistics, supply chain management and transportation solutions, Cardinal s management team includes the following members: Chairman of the Board Vin McLoughlin Vin McLoughlin brings more than two decades of transportation and logistics industry experience to his role as chairman. Cardinal was formed in 1997 as a direct response to the opportunities McLoughlin and his team identified in the dedicated contract carriage market. As chairman, McLoughlin drives the development and execution of Cardinal s short- and long-term business strategy and spends considerable time interacting with Cardinal s existing and potential customers. Prior to joining Cardinal, McLoughlin founded and served as president of the dedicated contract carriage services division at J.B. Hunt. McLoughlin was responsible for growing the division into a $175 million operation within four years. McLoughlin also served as regional distribution manager for Ryder s dedicated logistics services for nearly a decade, where he ran dedicated operations in the Northeast and Southeast. His early business experience includes management roles at CSX Intermodal and Roadway Express. McLoughlin earned a Bachelor-of-Arts degree in liberal arts from Williams College in Massachusetts and a master of management degree from Northwestern s Kellogg Graduate School of Management, where he was honored with the outstanding student in transportation distinction. CEO Tom Hostetler Tom Hostetler brings more than 20 years of financial, transportation and logistics experience to his role as chief executive officer. Hostetler joined Cardinal from J.B. Hunt Transportation Services, Inc., where he served as the vice president and general manager of the Dedicated Contract Services division. Serving with the division from its inception, Hostetler was instrumental in managing its profitable growth to a $175 million operation within four years. Prior to working at J.B. Hunt, Hostetler was a region manager for Laidlaw, Inc., with operating responsibility for 11 company locations in Ohio and Michigan. His early management experience includes overseeing various operational and financial analysis groups for divisions of Ryder Systems, Inc. Hostetler earned a Bachelor-of-Science degree in finance from the University of Illinois and a master s degree in business administration from Duke University. President and COO Jerry Bowman Jerry Bowman brings more than 35 years of logistics and transportation experience to Cardinal. In his role at Cardinal, Bowman serves as the company s president and chief operating officer. Bowman spent more than two decades with Ryder Systems, the last 12 with Ryder Integrated Logistics (RIL). He was a member of RIL s executive team during the company s explosive expansion into third-party logistics services. Before leaving Ryder in March 1998, he served as its senior vice president for the United States and Canada, with profit and loss responsibility for a business unit with more than $1 billion in annual revenue and 10,000 employees. Bowman earned his Bachelor s degree from the University of Georgia, majoring in business and economics.

5 CFO Carl Texter Carl Texter joined Cardinal serving as chief financial officer and senior vice president. Texter is a certified public accountant bringing more than 20 years of financial management experience to the company. Most recently, Texter served as chief financial officer of Crown Crafts, Inc., where he was responsible for engineering a highly successful restructuring of the company s finances. Prior to Crown Crafts, Texter held a number of key financial positions with BP Amoco to include CFO of Amoco Fabrics and Fibers, a global operation with 5000 employees and $900 million in sales. Texter holds a Bachelor of Arts degree from Princeton along with a Master s degree in business administration from Dartmouth College. Cardinal Services and Capabilities Cardinal Logistics Management Corporation offers a comprehensive range of tools and services including asset-based dedicated contract carriage services, home/jobsite delivery services, warehousing and inventory management, Cardinal Technology, consulting, supply chain modeling and logistics management. Solutions are highly customizable and may include dedicated equipment, drivers, contractors, management and technology for the exclusive use of that customer. Highlights of Cardinal Logistics Management Corporations service capabilities include: Dedicated Contract Carriage: Turn-key transportation systems Private fleet replacement Fleet supplements Specialized services Dedicated Home/Jobsite Delivery: Customized delivery services to office, home or jobsite Value-added services including set-up and installation Installation provided by trained professionals Professional management and professional contractors Cross-dock operations Specialized handling and delivery equipment Warehousing and Inventory Management: Entirely web-based application Ability to add new warehouses quickly Add new client inventory with a simple upload feature Manage and control inventory from any location with an Internet connection Web-based reporting capabilities Completely integrated with OMS Cardinal Technology and Consulting: Cardinal Logistics/Warehouse Design and Engineering Site selection Transportation Modeling Mode Selection Bid Process Analysis Warehouse layout and design Cardinal Technology Logistics Management System (LMS): o CardTrack and Trace o Cardinal Routing Cardinal Technology Transportation Management System (TMS): o Non-asset based fully customizable TMS

6 Logistics Management Services (LMS): Logistics Technology (web-native TMS) Logistics outsourcing services (load and carrier management) Logistics consulting services Spot transportation services Cardinal Logistics Experts Available as Resources or Speakers on a Host of Logistics and Transportation Topics The experienced management team at Cardinal is available to the media as an expert source on a wide range of topics related to transportation, logistics and supply chain strategies. Cardinal executives frequently serve as speakers at industry conferences across the country sharing their insight into leading industry topics. Cardinal s knowledgeable sales and executive management team has worked with some of the industry s largest and most successful third-party logistics organizations. These leading logistics experts and seasoned transportation veterans have experience in a variety of industries including: retail, food service, automotive, forest products, consumer goods, building materials, telecom, manufacturing and distribution. Cardinal experts can speak on a wide range of supply chain, logistics and transportation topics that include (but are not limited to): Outsourced third-party logistics Inbound and outbound logistics Rising trends in dedicated delivery operations Last or Final Mile deliveries Entrepreneurial approaches in business National driver shortage Driver recruitment trends (establishing owner/operator or contract driver programs; employee driver programs) Logistics Management Systems (LMS); Transportation Management Systems (TMS) or Warehouse Management Systems (WMS) Logistics within Vertical Industries such as Automotive, Retail, Manufacturing and Food logistics Legal aspects relating to outsourced logistics and transportation Logistics Site Selection Trends in warehousing and inventory management Cross-Docking Environmental Protection Agency (EPA) SmartWay Transport program benefits as a partner Logistics technology platforms Images and Logos Cardinal s extensive photo gallery contains dozens of four-color images in high-resolution JPEG format that can be easily downloaded for printed pieces and publications. These images include custom images of warehouses, logistics activities, trucks, home/jobsite deliveries in progress, executives portraits and more. We ask that photographs provided by Cardinal be given proper attribution to include: Cardinal Logistics Management Corporation all rights reserved. To gain access to Cardinal s photo gallery, please contact Amanda Pelfrey, Marketing Manager, at # # # #